Skeptical U.S. Supreme Court Questions Trump's Power to Impose Tariffs

Barry Adams
06 Nov, 2025
New York City

Stocks in New York traded down, and investors grew more confident that the U.S. Supreme Court is more likely to rule Trump's global tariffs illegal. 

The S&P 500 index edged down 0.2%, and the tech-heavy Nasdaq Composite decreased 0.3%, and traders debated the future path for high-priced "Magnificent Seven" technology stocks. 

Justices appeared skeptical about the legality of the U.S. president's use of emergency power to slap sweeping global tariffs to generate revenues for the federal government. 

"Tariffs are taxes, and that is exactly what they are," pointedly said Justice Sonia Sotomayor to U.S. Solicitor General Dean John Sauer. 

"Generating money from the American citizens, revenue" and "you say its incidental to the regulatory purpose, but I don't see how a quota is equivalent to revenue raising. A quota sets the limit to what you can import in, but it does not generate revenue," added Sotomayor.

Investors lowered the odds of the Trump administration winning the tariffs case, and the White House is likely to pursue other ways to impose import taxes on goods. 

"The vehicle is imposition of taxes on Americans, and that has always been the core power of Congress," stressed Chief Justice John Roberts.   

 

U.S. Stock Movers 

Lyft Inc. increased 2.2% to $20.63, and the ride-hailing company reported better-than-expected third-quarter results. 

Revenue increased 11% to $1.7 billion from $1.5 billion, net income advanced to a profit of $46.1 million from a loss of $12.4 million, and diluted earnings per share were 11 cents compared to a loss of 3 cents.

Gross bookings advanced 16% to $4.8 billion, active riders increased to 28.7 million from 24.4 million, and rides advanced to 248.8 million from 216.7 million a year ago, respectively.  

In the quarter, net cash provided by operating activities was $291.3 million compared to $264 million a year ago. 

For the fourth quarter, the company estimated gross bookings to rise to between $5.0 billion and $5.13 billion, an increase of between 17% and 20% from a year ago. 

The company projected adjusted earnings per share to be between $135 million and $155 million, and adjusted EBITDA margin to range between 2.7% and 3.0%. 

Figma Inc. jumped 7.8% to $47.46 after the software tool developer reported better-than-expected third-quarter results. 

Revenue increased 38% to $274.1 million from $198.6 million, net loss soared to $1.1 billion from $15.6 million, and diluted loss per share expanded to $2.72 from 7 cents a year ago. 

The company guided fourth-quarter revenue between $292 million and $294 million, implying a 35% growth rate at the midpoint of the range. 

 Snap Inc. soared 19% to $8.67, and the social media platform operator issued a strong fourth-quarter outlook. 

Revenue increased 10% to $1.5 billion from $1.37 million, net loss decreased 32% to $103.5 million compared to $153.2 million, and diluted loss per share shrank 33% to 6 cents from 9 cents a year ago. 

In the quarter, daily active users increased 8% to 477 million, and monthly active users rose 7% to 943 million from a year ago, respectively. 

The company's board authorized a stock repurchase program of up to $500 million, using $3 billion of the company's cash, cash equivalents, and marketable securities.